The 6 Most Common Types Of Debt And How To Pay For It

Almost everyone has a debt of some kind. Whether it’s from inflation, people living beyond their means, or more people attending college, times have certainly changed. In the past, our grandparents and the generations before them did not accumulate as much debt because they lived on cash as opposed to credit. It’s quite the opposite today. Plastic has replaced cash causing more and more individuals to overspend, ruin their budgets, and get stuck paying high-interest credit cards.

Situations like these are common among most and many, like you, are concerned with how to pay off debt. In this article, we will address that concern with some debt relief options that may help your finances. Take a look at the six most common types of debt and some debt management strategies you can use when wondering how to pay it off. 

Common Types Of Debt Categories And Financial Planning Tips

1. Mortgage Debt

A home is by far the biggest purchase most people will ever make. Mortgage loans typically range from 10 to 30 years and the monthly payment depends on how much you put down. You pay debt like this down and the interest by making at least one extra payment a year. How much you can save by doing this simple thing may surprise you. 

2. Vehicle Loans

Buying a car, truck, SUV, or some other vehicle can be pricey depending on the make and model. You can better pay this debt by using debt management strategies. Examples of this are seeking refinancing of the loan from your bank, which will lower the interest, or using the vehicle in a side gig like delivery services. Take the money from the gig and put it solely toward your vehicle note until it's paid off. 

3. Student Loans

It's hard to graduate from college without a student loan and most take 10 years or more to pay off. You can cut this cost by looking for education grants to pay for school or taking some courses online, which is cheaper than on-campus learning. Some companies also have programs where they pay for your education if you come to work for them after you graduate, so look into those financial planning tips when trying to pay off student loans.

4. Credit Card Debts

One of the biggest sources of debt among Americans is credit cards. They are convenient but they also cost in interest. You can pay debt on these by concentrating on the card with the smallest amount first. Move to the next smallest amount once that one is paid off. Using debt management strategies like this will help you to eventually become debt-free.

5. Personal Loans

Personal loans make up one of the more common types of debt on the market today. Personal loans can be used for almost anything and are typically issued by banks and other financial institutions, although some private lenders also deal with them. You can pay off a personal loan by allocating a portion of your paycheck toward loan payments.

6. Short-Term Loans And Debt Relief Options

Short-term loans cover an array of products from a variety of lenders from banks to private lenders. They include payday loans, cash advances, signature loans, and title loans. Seeking a title loan online is the newest convenient trend. Loans like these are typically paid off in a paycheck or two as they are meant to pay for unexpected expenses.

The advantages of this type of secured debt are that it amounts to quick cash and is paid off quickly so it doesn't hang over your life as different types of debt do. Short-term debt is also pretty easy to get even if you have bad credit or no credit.

Paying For Larger Emergencies With Help From Southwest Title Loans

Some unexpected expenses are now thousands of dollars because of inflation. A car or home repair that was once an easy fix can cost $4,000 to $5,000. That is a lot of money to come up with at once. 

This is where seeking a title loan online from Southwest Title Loans can be helpful. We offer both title and registration loans that can be used in an emergency to pay off an unexpected expense. Depending on the vehicle being used as collateral, you can get approved for up to $15,000 in title loan funds, allowing you to cover a larger expense. 

It only takes three things to apply for this type of loan including a clean title to the vehicle, the vehicle available, and a picture ID like a license or a state ID. The process starts with filling out an online form to inquire about a loan. 

Once you submit a form, a company representative from a location closest to you will contact you to explain the process. You have the choice after that to come into the closest title loan store to make a formal application or meet the loan representative at a place most convenient to you. 

A loan representative will check your documents when they meet with you and will inspect your vehicle. Once you are qualified, you can get money either the day you sign the papers or the next day. You can keep your car during repayment. 

Submit The Online Form

It's easy to find out about a title loan online by submitting a loan inquiry form through Southwest Title Loans. A title loan will help you pay for an unexpected expense while you continue to pay bills for different types of debts. 

Find out if this fast cash loan option, regardless of your credit score, is a good one for you by submitting the form! Loan representatives are waiting to give you advice today!

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.